Google executives hunker down for fight with EU as fines loom

BRUSSELS: As European Union officials count the days before their annual vacation, Google’s lawyers and lobbyists are hunkering down in Brussels, preparing for what may be a record EU antitrust fine.

A penalty in the shopping-search probe could come within weeks and many expect it to exceed a $1.2 billion fine on Intel Corp in 2009.

That would be another show of strength by EU Competition Commissioner Margrethe Vestager who slapped Apple Inc with a 13 billioneuro ($14.5 billion) tax bill in August.

Google is a top priority case for her as European politicians and publishers push for action against the Mountain View, California-based company that’s come to dominate online advertising.

“If there’s going to be a fine, it has to be the biggest ever,” said Stephen Kinsella, a lawyer at Sidley Austin who represents companies that have complained to the EU about Google.

“The European Commission has strongly signaled that if there is going to be a fine it would need to be at a level that would have deterrent effect.”

Timing on a decision could slip and Google representatives and the commission both remain tight-lipped, declining to talk about it. Google hasn’t yet met with regulators to discuss a potential EU order or how it might implement any changes, according to a person familiar with the probe, who spoke on condition of anonymity.

But the EU has a long tradition of issuing major rulings just before officials quit Brussels for their summer break. Last July saw more than $3 billion in fines for truckmakers including Daimler AG and Volvo AB.

With one eye on the impending decision, some Google officials have been getting ready, moving vacation dates or making sure they are close to the action, other people familiar with the probe said.

Vestager “has a keen eye to maximising the impact of any announcement on a case and July sees a slowdown in the news cycle,” said Christopher Bright, a lawyer at Shearman & Sterling in Brussels, who’s not involved in the Google probe. “Together with the advanced state of preparation of the case, this points to a July announcement for Google.”

Vestager isn’t afraid of big numbers, setting records with the tax bill for Apple — which it’s appealing — and the cartel fine for truck companies.

Several people ET spoke with about Ericsson’s India operations, including its current and former employees, said the Stockholm-based firm has reduced headcount in the last one year or so across functions, in line with its global restructuring.